by Greg McDonald

With minor modifications and additions

The discovery of gold in Australia in the 1850's resulted in one of our
most exciting and romantic periods. At the time, however it was a period of incredible
social and economic upheaval.
Ironically the discovery of gold almost sent the colony broke as industry and commerce fell
to its knees as laborers, clerks and anyone else with a shovel, pan and glint in their eye
rushed to the diggings.
Up until this time, the mining of gold had almost been the sole privilige of central
governments, gold rushes in California and Australia allowed the common man to participate
for almost the first time in history.
It was a time of frantic pace where many decisions - including that of making coins - had
to be made there on the spot, with little regard to the usual red tape. And so we have an
interesting situation where our first indigenous gold coins were, strictly speaking,
illegal issues. The cutting of red tape to get them circulated as soon as possible meant
circumventing Royal approval. Then, as now, the issuing of coinage without official
approval is illegal. However we must appreciate the circumstances which led to this
extraordinary situation; to understand it was a period of desperation rather than one of
deliberately ignoring Royal Decree.
Our first gold "coinage" looked anything like coins in the true sense. In fact
they were simply strips of stamped gold which came to be known as Adelaide Ingots. They
came into being as a result of gold being found at Mount Alexander in the Castlemaine
district of Victoria.
When word of the strike reached Adelaide, some 500 km to the west, the rush was on. In the
following three months nearly half of South Australia's male population were trying
their luck. A labor starved Adelaide was on the brink of bankruptcy when about 50,000
pounds worth of gold arrived for assaying back in the capital, from the diggings.

Adelaide Ingots

However plentiful the gold shipments may have been, problems soon arose in
trying to use nuggets and dust in normal day to day trade. On January 9, 1852, a group of
influential merchants approached Lieutenant-Governor Sir Henry Young to start up a mint to
convert the raw gold to coin. Even though he realized that only Royal approval could
initiate such a move he was also aware that the survival of the colony was at stake. To
obtain Royal permission would take at least six months by even the quickest clipper ship
and Adelaide simply couldn't wait that long. A compromise was decided upon when Sir
Henry, acting upon advice from George Tinline, the acting manager of the South Australian
Banking Company and the Colonial Treasurer, Robert Richard Torrens decided to mint ingots
rather than coins. The idea was to put gold into a more useful form without denting the
Royal pride too severely. In fact they had found a very handy loophole in the act which,
they felt, covered them nicely.

While the governors were not allowed to "ascent in her Majesty's
name to any bill affecting the currency of the colony" there was a way out in the
accompanying paragraph which said "unless urgent necessity exists requiring such to be
brought into immediate operation". How urgent the situation was can be gauged by the
fact that only two hours had elapsed between reading the proposed law to the Legislative
Council on January 28 and having it passed as the Bullion Act, Number One.
The ingots were not intended as a general issue but rather to circulate between banks to
hold as backing against their note issue. The first ingot appeared amidst uproar on March
4. They were of different weight, shape and even colour. Critics claimed they would be too
easily counterfeited while the different weights would make them an accounting
nightmare.
To the layman, the ingot was a very confusing piece of currency indeed. They were simply a
flat strip of gold (some say made with the use of a steam roller) which bore an official
crown seal and punch figures showing the fineness of the gold which was roughly
standardized at 23.1/8 carats.
Inside a circular stamp surrounded by the legend "weight of ingot" were punched
the weight of the ingot as well as a weight conversion to 22-carat gold. No two were the
same shape with some being almost round while others were rectangular in shape. On average,
the dimensions were about 50 x 25 mm. The calculations necessary hardly made them easier to
use than raw gold.

The Adelaide Pound

By November 1852, mounting criticism resulted in the bullion act being
amended to allow the striking of one, two and five pound issues as well as ten shilling
gold pieces. The first, and only issue to be struck was the One Pound Coin although dies
and re-strikes of the five pound pieces are known. However, even the striking of the One
Pound coin was not without its problems. A local die maker by the name of Joshua Payne was
given the go-ahead to cut the die even before the amendment to the act was finalized.

The plan was to commence production immediately the bill had gone through.
Payne, however, had produced less than 50 of the new pound coin when a severe die crack was
discovered - thus causing further delays. The crack occurred from the inner circle to the
rim beside the downstroke of the "D" of "DWT" on the reverse side of
the coin. A new die was quickly cut and about 25,000 of what was to be known as the Type II
Adelaide pound were struck. Both coins are considered to be very rare. Despite the
seemingly high mintage figure of the Type II, very few have survived. Soon after they began
circulating it was discovered that their intrinsic value was nearly two shillings (actually
1/11d) more than face value. What coins were saved from profiteers were eventually melted
by official decree when the British Government rescinded the Bullion Act.

Although coming in for some initial flak Sir Henry Young went on to greater
things. As a result of his efforts in South Australia, he was promoted to Governor of
Tasmania in 1854 and held that position until his retirement in 1861. Other key figures in
the enterprise were likewise rewarded. Robert Richard Torrens, who suggested making the
ingots, was later knighted, while George Tinline was awarded a special gold plate along
with a cheque for 2500 pounds for his efforts.

The inner ring of the Type I has beading or denticles while the reverse of
the Type II features a crenellated design.
The wording on the second issue is slightly larger and of a heavier type than the more
delicately cut Type I die.
While the deeds of these men and the desperate times in which they lived are largely
forgotten, the legacy of the Adelaide Pound remains with us. Both the Type I and Type II
coins attract much interest when they appear for auction occasionally.

Collectors and auction houses live for the day when a genuine and original
Five Pound Piece is discovered. It is rumored that six trial pieces were issued at around
the same time as the One Pound issues, but there are no records to substantiate this. The
design was similar to the One pound but closer to a 50c piece in size. In 1919 six gold re
strikes and two silver issues were especially struck as historical artifacts. In 1927
another, in gold, was struck for the National Gallery.
Although the question is largely academic in nature, collectors often argue what would be
the most sensational find - a genuine Adelaide Five Pound Coin or a Type I - without the
die crack.

Sydney Mint Gold

While the enterprising Adelaide Pound episode was quickly scotched by a
miffed home office in London, it did at least jolt them into action.
It is evident by the existence of rare pattern proofs dated 1853 that the Sydney Mint Sovereigns and Half Sovereigns were decided
upon only a short time after orders to close the Adelaide operation came through.
Legislation for the establishment of a branch of the London Royal Mint in Sydney was
announced in August 1853 - much to the disappointment of the Legislative Councils of
Victoria and South Australia who also applied for the honor of having Australia's third
- but first official - mint.

Established in a wing of the old Rum Hospital, the mint opened on May 14,
1855 and the first coins were struck on June 23, 1855. Although the obverse by James Wyon
was only slightly different to that used on British minted sovereigns and half sovereigns,
the reverse was uniquely Australian.
It was the first and last time, such licence was ever given to a Royal Mint branch in any
of the colonies

The reverse was loosely modeled around contemporary reverse designs of the
sixpence and shillings with the words "Sydney Mint Australia" and the
denomination arranged around a splay of flowers and a crown.
The coins broke with tradition several ways in that they bore a notation of value, they
included the name of the mint and most interestingly of all Australia did actually exist as
a political entity until 1901, when the 6 colonies came together to form the Commonwealth
of Australia.
Like the Adelaide Type I Pound, this issue was also short-lived. In 1857 a new obverse
design was incorporated to give the entire coin a completely Australian flavor.

The Leonard Charles Wyon obverse gave the still young queen a revised hair
style complete with a spray of banksia. Initially, these coins were only intended to
circulate in NSW. This was later amended by the British Treasury to include to "Other
Colonies of Australasia" but not the United Kingdom.
Still hurt by the official rebuff concerning the location of the mint, both Melbourne and
Adelaide protested. Charges that the coins were not intrinsically sound resulted in some
Victorian merchants discounting them to 19 shillings.
Again London had to act; and it did so by making an official assay of the coins in January
1856. The result surprised everyone.

It was found the intrinsic value of the Australian coin exceeded that of its
British counterpart, due mainly to the fact that the gold was alloyed with silver rather
than copper as was the British sovereign.
Word spread quickly and those which had not been melted down for the profit were by 1868
being accepted as legal tender as far afield as Newfoundland. India had also adopted the
Sydney Mint sovereign as legal tender, in fact
they were more popular than their English counterparts because of the yellow colour, ( a
result of the silver in the alloy) as opposed to the redder colour of London. Ironically,
Britain had been accepting the coin since 1863. In fact, this success was the Sydney
Sovereigns undoing, and in 1870 it was decided to abolish the distinctive designs.

Imperial Gold

As trade improved and the Australian gold mines were slowing down, London
was determined to have a simplified monetary system between itself and its ever expanding
colonies. Thus in 1871 the standard Imperial designs were adopted instead.

1871 Sydney Shield Reverse.
The shield reverse is a hard wearing design, and can still be attractive even after being
in circulation.

The "Young Head" obverse used on Australian Shield Sovereigns, the date appears
under the portrait.

In 1871 London was re-introducing it's now famous Benedetto
Pistrucci's rendition of St George killing the dragon. As Pistrucci had died in 1850,
it is almost certain that it was engraved by other hands. Up to that point all Queen
Victoria sovereigns featured the intricate Jean Baptiste Merlen shield reverse design.
Pistrucci's famous reverse which was issued on the first sovereign of 1817 and was used
on both gold and crown issues of George IV was dropped completely by William IV when he
assumed the throne in 1830. The design was suggested by Pistrucci who was originally
introduced by Sir Joseph Banks of Captain Cook's voyages of discovery. It was suggested
it would serve as a reminder to world of Britain's victory over Napoleon at Waterloo in
1815.

The mintmark appears just under the base of Queen Victoria's neck on St George reverse
coins until 1887

1887 Melbourne Mint St George Reverse
Notice that St George has no ribbon flowing from his helmet, this was introduced on the
Jubilee issues of 1887

It was Britain's intention to issue sovereigns of both types. It
allowed the branch mints to decide which, and how much of the two designs to strike. While
Britain dropped the shield reverse completely in favor of the St George type in 1874,
"Shields" were minted in Australia until 1887 due to the shields popularity in
India along with public demand at home.
The only difference between the London minted St George and shield reverse sovereigns and
those minted at the Sydney Mint was a small
"S" mintmark to denote the colonial issue. There were no St George reverse half
sovereigns minted during this period.
Sydney's production as supplemented from 12th June 1872 when another branch of the
Royal Mint was opened in Melbourne. The new
Mint fronted on William Street between Little Londsdale and Latrobe Streets. There were
four buildings, one on each boundary, giving a central courtyard.

In the first half year of operation the new Mint achieved a total of 748,180
sovereigns. These consisted of two types: the Shield design by JB Merlen and the Benedetto
Pistrucci St George and the Dragon type It was not without its problems however. Faulty
machinery in the opening weeks damaged at least 95 per cent of the coins struck. In the
first year of operation no half sovereigns were issued and only about one-third of the
Sydney production of the sovereigns appeared. These initial problems were soon overcome
however and the Melbourne Mint was still
producing coins nearly 100 years later. The Melbourne Mint also produced both types of the
sovereign and its distinguishing feature was the small "M" mintmark.
From 1874 to 1889, a total of nearly 67 million pounds worth of gold coins were struck by
both mints which was twice as much as the figures achieved by the parent mint in London
over the same time span.

But while both Sydney and Melbourne can be proud of its production figures,
figures of another kind were sadly lacking. Mintage figures were taken as a total figure
with no separate records being kept as to how many St George reverses were being produced
each year compared to the shield reverse type.
It can obviously be assumed that less the number of each type was actually struck than the
figures would indicate. However it is worth bearing in mind that collectors and prices
realized tend to agree that the shield reverse is scarcer in most instances
In 1887 both types of sovereign as well as the half sovereign were struck showing the Young
Head obverse which had been designed by the talented William Wyon.
However this was the Jubilee year - marking Queen Victoria's 50th year on the throne
and another obverse design was introduced to be struck in conjunction with the soon to be
redundant young head type.

On shield reverses the mintmark can be found at the bottom of the shield, this one has the
"M" for Melbourne Mint.

The Jubilee obverse introduced in 1887

Crafted by (later Sir) Joseph Edgar Boehm, the portrait showed the queen
with a hard scowling look of disapproval. Perhaps she was just concentrating as she
appeared to be balancing the crown on her head like a sideshow entertainer rather than
wearing it like a stately monarch. The design drew much criticism.
This design only employed the St George reverse design, (With the addition of a
"ribbon" flowing from St Georges helmet ), although the shield reverse half
sovereign remained unaltered. The design at least gave the Australian series an interesting
catalogue variety in the Boehm's initials appear only on some of the 1891 Sydney Mint
half sovereign issues of 1891.
1887 was also the first year when the Sydney Mint
issued very small numbers of two and five pound coins that were struck for VIP's. These
are extremely rare and should not be confused with their English counterparts which were
struck in larger numbers. As with all gold coins of this era, the mint mark is to be found
on the exergue just above the date.

The Jubilee issue continued until 1893 when the encroachment of time again
made it necessary to alter the portrait of the ageing Queen. Although this new issue is
officially called the Veiled Head type, the colloquial expression "Old Head" type
is probably closer to the mark. As was the case six years before, both the out going style
and new style were released. The only modification concerned the half sovereign which also
saw the introduction of the St George reverse. No more shield reverse half sovereigns would
be issued after 1893.

At the time when Sir Thomas Brock’s Veiled Head design was introduced,
the nation was in the firm grip of economic depression. Much of the foreign capital that
had been invested in the great Australian land boom was being repatriated, and this outward
flow of capital was driving many respected banks to collapse. Although by 1893 the volume
of banking failures was easing from a rush to a trickle, the economic hardship that the
depression caused the average Australian during the last years of the Victorian era was
compounded by the beginning of a drought that affected the entire nation. Needless to say,
a sovereign during this period had a high value indeed, accounting for at least half a
week’s wages for the average man. This design was to continue with Queen Victoria
until her death in 1901.
Again a small number of two and five pound issues, dated 1893, were struck at the Sydney
mint for the selected few. They are also considered extremely rare
Two years before Victoria's death during her record reign of 63 years, another London
branch mint was established in Perth. The mintmark,
"P" on all subsequent Perth sovereigns and half sovereigns can be found in the
same place designated for the Sydney and Melbourne coins of the same period.

The "Old Head" obverse , introduced in 1893

Edward VII obverse

Edward VII's short reign saw an abundance of gold sovereigns from all
three Australian branch mints. Already in advancing years, the portrait was the work of
George William de Saules who also designed the crowned likeness of his majesty which
appears on the Australian Commonwealth silver coins of 1910.
Although Edward VII acceded to the throne in 1901, he was not crowned until 1902, and the
first coins issued for him were dated 1902, and in that year alone, gold coins worth over
11 million pounds were produced by the combined efforts of the three mints. Many of the
foundations of Australia’s monetary system, economy and society that are today taken
for granted were laid during the Edwardian era. Most of our national government
institutions were established at this time; the Banknote Act was passed; and
Australia’s first currency coins were issued . The first battalion of Commonwealth
troops entered active service in 1902; many major public buildings were erected; and a
large number of regional towns & centers were established.

Following Edward's death in 1910, it was left to Sir Edgar Bertram
Mackennal to design both the bare headed likeness of George V used on the gold issues and
the crowned effigy of the commonwealth issues which also included the two bronze issues for
the first time
The world was moving at a much quicker pace by the time George V came to the throne.
Dramatic changes in the way business was conducted and the way wars were fought brought
sudden and often permanent changes - even to something as traditional as gold coinage. The
first chink in the armor came in 1915 when the Melbourne Mint produced its last half sovereign. Sydney
ceased production of half sovereigns in 1916 and Perth in 1920. Perth produced no half
sovereigns in 1917 and 1918 but did produce 1918 dated half sovereigns in 1919 and
1920.
The King George V "Large Head" obverse appeared on Australia's sovereigns
during an era of national change and turmoil. The effects of events as momentous as World
War I and the Great Depression were felt for many decades to follow, also influencing the
rarity of many Australian sovereigns, with gold production in Victoria and Western
Australia declining steadily; Australia's economic fortunes fluctuating widely, and
high volumes of gold being exported to repay debt from World War I.
As the 1920's emerged, the production figures for the Sydney Mint sovereigns became
more erratic and some of the rarest dates of the entire sovereign series are found in this
period. In 1926, Sydney suffered the final irony of going broke making coins.

King George V "Large Head" obverse.

King George V "Small Head" obverse, notice the extra line of
'beading'.

In 1929, the obverse of the remaining sovereigns still being minted at the
Perth and Melbourne Mints went through a cosmetic change when the
portrait of George V was slightly reduced in size although the dimensions of the coin
remained the same. The King George V "Small Head" obverse has 2 rows of beading
around the rim and was seen rather late in the life of the sovereign. It was issued only
from 1929 to 1931, the last 3 years which Australia was on the gold standard. It was
introduced in an attempt to improve the level of detail seen both in the obverse &
reverse designs and prevent 'ghosting ' of the reverse design. One of the technical
considerations for an artist designing a coin is that when the coin is struck, the metal
should flow evenly throughout both designs. If the design is higher on one side than the
other, then not all of the opposing design will be clear. This was thought to be the case
with the George V Large Head portrait, hence the change.
The age of gold as a means of circulating medium of exchange now belonged to a bygone era.
Both Perth and Melbourne ended the golden age in 1931. Australia was
not to see another gold coin until 1980 when the $200 gold Koala emerged, followed by the
Perth Mint's Gold Nugget in 1986. It was the dawning of yet another era; when a gold
coin was born out of the demand from collector interest rather than older values when a
sovereign in the hand meant a quid's worth of real money.